CapitaLand Retail China Trust's Rock Square. (Photo: CapitaLand Retail China Trust)

CapitaLand China Trust (CLCT) has secured its maiden sustainability-linked loan.

The USD150 million facility is arranged by UOB, making CLCT the first Singapore-listed REIT to secure a loan linked to the sustainability performance of a China portfolio.

The sustainability-linked loan incorporates interest rate reductions based on predetermined sustainability-linked targets tied to the REIT’s portfolio.

These targets include maintaining minimum reductions in carbon emission, energy and water usage.

Proceeds of the loan will be used for general working capital and corporate funding requirements, including financing or refinancing of investments, said the REIT.

CLCT is Singapore’s largest multi-asset China-focused REIT by market capitalisation and property value.

The REIT’s portfolio comprises 11 shopping malls and five business park properties with a total gross floor area of approximately 1.7 million square metres.

CLCT was last done on the SGX at SGD1.24, which currently implies a distribution yield of 6.82% according to data on the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.